Budget 2018 – Lite

On Monday this week (29th October 2018) the Chancellor, Philip Hammond, held a budget.

Most of what is announced in a budget is considered by laypeople to be irrelevant so here I want to summarise the points that may actually make a difference to you and me.

The personal allowance for 2019/2020 will be £12,500 meaning that is how much a person can earn before paying even a single penny in tax.

Previously proposed reforms around national insurance contributions have been put on hold until at least April 2020.

The current VAT registration threshold is £85,000 and this will stay as is until April 2022. This is not in line with speculation in the financial services that the threshold would be lowered to make more businesses compy with MTD (Making Tax Digital) earlier.

Fuel duty is to be frozen for the ninth consecutive year.

For the Income Tax Rates and Allowances that will apply from April 2019 please see our Tools and Calculators page.